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Here Are 5 Key Apple iPhone Chip Plays With One In Buy Range

With a bullish quarterly report and guidance from Apple (AAPL), your stocks to watch this week are five iPhone suppliers or related plays: Broadcom Limited (AVGO), Skyworks Solutions (SWKS), Texas Instruments (TXN), Applied Materials (AMAT), Qorvo (QRVO) and Qualcomm (QCOM).

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Apple

Apple cleared a cup-with-handle buy point of 160.97 on Oct. 27, days ahead of its quarterly report. With Apple up 2.6% to an all-time high Friday, shares are now extended from the 5% buy range.

Broadcom

After a wild session Thursday, Broadcom is trading back above a 259.46 buy point initially cleared on Oct. 30. Friday's 5.4% gain puts shares at an all time high, with Broadcom just above the 5% buy range.

Broadcom said Thursday morning that October-quarter revenue will be at the higher end of its range. On Friday, shares rallied on Apple's earnings as well as a report that Broadcom may make a bid for wireless chip giant Qualcomm (QCOM), which has been feuding with Apple and many countries around the world over its licensing agreements. Qualcomm leapt 13% to 61.81 Friday, its best level since January.

Skyworks Solutions

Skyworks Solutions cleared a cup buy point of 110.71 on Oct. 30, and holding within its buy zone. Skyworks, which issues its quarterly results on Monday, seems to be hitting some resistance around the 114 price level.


IBD'S TAKE: Apple is on a hot streak. For a look at other high-quality growth stocks at or near buying opportunities, make sure to check out Leaderboard.


Applied Materials

Applied Materials broke out of a cup-with-handle base with a 47.69 buy point in September, and is now extended 18.6% from that level. When a stock becomes 20% extended from a buy point, that's usually a good time to take at least partial profits.

Applied Materials, a chip- and display-equipment maker, is not an Apple supplier. But it should benefit from the use of OLED screens by Apple (in the Phone X) and other top manufacturers.

Texas Instruments

Meanwhile, Texas Instruments is extended 16% from a cup-with-handle buy point of 84.34. The stock has been on a steady climb since clearing that level in heavy volume on Sept. 15.

Qorvo

Qorvo tried to clear a 76.57 buy point from a sloppy cup-with-handle base this past week, but never closed above that level. Now, on the heels of earnings and weaker guidance, Qorvo is testing support at the key 50-day moving average.

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